According to Hashtag Pay Me, a business that provides rate calculators for influencer deals, Instagram remains more lucrative when it comes to brand deals, despite the buzz and engagement rates soaring around TikTok.
The information stems from a database by Hashtag Pay Me which tracks 400 U.S. creators with a variety of follower counts over the last six months of 2022. Each creator completed a 30-question survey about how they’re paid. The report interestingly concluded the following;
The report states that, on average, mega influencers on Instagram make about $15,000 per deal, whereas mega influencers on TikTok make closer to $10,000 per deal. Hashtag Pay Me defines mega influencers as those with more than 1 million followers.
A mega huge difference is that the report noted influencers across the two platforms with similar follower counts earn an average of up to 200% more on a typical Instagram brand collaboration than they do on a typical TikTok deal.
Instagram creators typically charge 236% more to post content on TikTok channels; whereas the average TikTok creator charges just 40% more to post content on Instagram.
Let’s give an example to make that clear. If Zoe has 220k followers on Instagram and 170k on TikTok, where a brand may pay her £1000 for an Instagram Reel, she is likely to charge higher (£15000 for example) for a TikTok. But if Amy has 450k on TikTok and 150k on Instagram, she is less likely to charge higher for an Instagram post.
Why? “Since TikTok enables you to link your IG channel directly to your TikTok bio, siphoning your audience to IG is streamlined and simpler for a creator,” the report explained. “Plus with TikTok’s ability to create viral channels easier than Instagram, TikTokers see their IG channel as ‘free exposure’ while Instagram creators have significant barriers to drive their native audience to TikTok.”
The report also highlighted how the platform marketplaces pay creators far less. Creators tend to be much better paid when dealing with a brand directly or via an agency (such as Engage Hub) than if striking a deal through the platform itself. The report claims that creators working directly with brands earn an average of $2,952 per deal, whereas those brokering deals on the Instagram or TikTok creator marketplaces earn an average of $1,000 per deal. “The more outsourced creator sponsorships are, the less the creator has an opportunity to advocate for their worth,” the report explains.